Currency traders hate Brexit Minister David Davis

Sterling's
revival against the dollar took a massive leg down on
Wednesday afternoon, spooked by the hard stance of Britain's
Brexit secretary David Davis as he spoke in front of parliament.

Sterling then recovered sharply after Davis stopped speaking,
having eventually confirmed that there would be some
parliamentary involvement in the Brexit decision

The pound was
up over 1% against the dollar for much of Wednesday but began
collapsing around 1.30 p.m. BST (8.30 a.m. ET) as Davis started
to speak. Once he finished, however, sterling fought back
recovering almost to its pre-speech level. Here's how that
looked:Investing.com

The collapse coincided with David Davis, the Secretary of State
for Exiting Europe, answering questions on the government's
Brexit strategy in Parliament.

Sterling initially rallied after prime minister Theresa May
agreed to debate the triggering of Article 50, which begins the
official Brexit process, in parliament. Traders hoped that
signalled a more conciliatory stance.

But Davis initially took a hard stance on the questioning and
reiterated that control over immigration is the top priority in
negotiations.

Hence, the pound's slump. However, towards the end of his
appearance, Davis appeared to concede that there would be more
involvement for MPs in the Brexit negotiations than previously
expected, and sterling fought back.

Sterling's movements against the euro followed a similar
pattern.Investing.com